Everything Else Equal, Which of the Following Actions Would Tend

question 14

Multiple Choice

Everything else equal, which of the following actions would tend to increase interest rates in the financial markets?

• A)Investors' time preferences for consumption increase.
• B)Investors are exposed to fewer economic risks.
• C)Production opportunities decrease throughout the economy.
• D)The overall creditworthiness of borrowers improves significantly.
• E)The default probabilities of corporations decline substantially.

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Definitions:

1877

marks the year of the end of Reconstruction in the United States, characterized by the withdrawal of federal troops from the South, and the compromise that settled the disputed 1876 presidential election.

Oliver Otis Howard

was a Union Army general during the American Civil War, known for his efforts in the Freedmen's Bureau to help freed slaves, and as one of the founders of Howard University in Washington, D.C.

Carpetbaggers

A term used in the context of the Reconstruction era in the United States to describe Northerners who moved to the South after the Civil War, often criticized for exploiting the region.

Bloody Shirt

A term referring to the practice of political leaders invoking the blood of martyrs or heroes to inspire support or justify their actions, often used to rally votes or support.